Corporate Strategies to beat the Downturn: Cutting Slack and Layoffs
February 12, 2025
Why Graduates are Flocking to Startups In recent years, many fresh graduates as well as experienced professionals want to work for startups as they feel that by doing so, they would be adding value to themselves as well as being part of an exciting and creative journey. The first aspect about adding value for themselves […]
It is essential for managers to know their employees well to expect loyalty and commitment in return. Employees need to feel comfortable at the workplace for them to deliver their level best. It is completely unprofessional to address your employees as “Mr”,“Ms”” or “hey”. There is absolutely no need to address them as “Sir“ or […]
Employee engagement has been linked with almost every aspect of management in some or other form. Although there are not enough evidences to support a direct relationship between them but several factors show that they are indirectly connected with each other. In the same way, the hygiene and motivation factors have also been associated with […]
Changing Nature of Work and the Trends in Employment The world of work is changing. Part Time and Freelance employment has grown whereas stable and secure jobs that last an employee’s lifetime in one organization are scarce. If the Baby Boomers were expected to work all their lives in at most two or three jobs, […]
Experiential training is a whole body of training methods that are used to develop behavioural skills and physical abilities. Role playing, equipment simulations, games, on the job training (OJT), behaviour modelling, case analysis and computer based training are some of the experiential learning methods that can be used to deliver a training session. Experiential learning […]
Compensation system involves the total rewards that are given to the employees for the labour and services they provide to the organization. Compensation includes direct monetary benefits as well as indirect monetary benefits.
Wages and salaries form the direct financial benefits that an employee receives from his or her company. Besides, wages and salaries, bonuses and commissions also form a part of the direct monetary benefits. The indirect monetary benefits include paid absences and other leave benefits, retirement plans, employee insurance schemes, health plans, education benefits and other such benefits.
A well-defined and balanced compensation system gives the organization an advantage of maintaining internal as well as external equity. It is a powerful tool for attracting employees, motivating them to work in achieving the strategic organizational goals, and retaining them in the long run. An HR Consulting Firm can provide an in depth analysis and detailed report on the setting up of a balanced compensation system for the company.
An organization need to have a clear compensation philosophy which is in line with the strategic goals, objectives and culture of the organization. Based on the compensation philosophy of the company, the various components of compensation are designed and chalked down in detail.
The development of compensation philosophy includes the study of various aspects viz:
Compensation detailing comprises of identifying positions and setting up of wage or salary specifications against each of the position. Also, incentive packages and bonuses, if any, are clearly defined for each of the position while describing the compensation related details.
Compensation detailing may involve execution of following activities depending upon the requirements of the organization:
A compensation study carried out in an organization generally involves following important elements:
Depending upon the requirements of the company, the HR Consulting Firm may take up the necessary aspects required to be considered for development and/or improvement of the compensation system in the organization, thereby, strengthening the compensation system of the company by making it more equitable and attractive.
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